OFFICE OF THE CFO - FTI Consulting
OFFICE OF THE CFO - FTI Consulting
OFFICE OF THE CFO - FTI Consulting
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<strong><strong>OF</strong>FICE</strong> <strong>OF</strong> <strong>THE</strong> <strong>CFO</strong>
CRITICAL THINKING AT <strong>THE</strong> CRITICAL TIME TM<br />
<strong>FTI</strong> <strong>Consulting</strong> is a global business advisory firm that provides<br />
multidisciplinary solutions to complex challenges and opportunities.<br />
We are 3,800 trusted<br />
advisors serving<br />
clients globally<br />
We combine<br />
unparalleled expertise<br />
and industry knowledge<br />
to understand, protect<br />
and enhance enterprise value<br />
NYSE: FCN<br />
Our breadth and depth extends<br />
across every social, political,<br />
and economic hub across<br />
the globe<br />
$2 bn<br />
Enterprise Value<br />
300+<br />
Senior Managing<br />
Directors<br />
1,300+<br />
Clients<br />
80<br />
Different Disciplines<br />
85<br />
of Fortune<br />
100 Companies<br />
3
REPUTATION: A KEY DRIVER <strong>OF</strong><br />
ENTERPRISE VALUE<br />
The <strong>FTI</strong> <strong>Consulting</strong> service model provides a single source that addresses the interrelated<br />
issues that can affect enterprise value. Our goal is not just to address challenges but to<br />
anticipate them, surround them and deliver sustainable solutions that range from the<br />
immediate to the long term.<br />
Governance Compliance Liability<br />
REPUTATION<br />
Performance<br />
Finance<br />
Enterprise<br />
Value<br />
Information<br />
• Understanding stakeholder perspectives<br />
• Managing brand perceptions<br />
• Leveraging innovative tools<br />
• Protecting and advancing reputations<br />
• Counsel for transformative events<br />
• Shaping the policy debate<br />
Spanning countless industries, <strong>FTI</strong> <strong>Consulting</strong> has unrivaled industry expertise, providing<br />
clients with sector depth in the following areas:<br />
Agriculture<br />
Energy and<br />
Chemicals<br />
Healthcare,<br />
Pharmaceuticals<br />
and Life Sciences<br />
Industrials<br />
Banking, Insurance<br />
and Financial Services<br />
4<br />
Real Estate,<br />
Hospitality and<br />
Construction<br />
Retail & Consumer<br />
Communications,<br />
Media and<br />
Entertainment<br />
Transportation
WHAT’S IN YOUR INBOX<br />
Today’s chief financial officer (<strong>CFO</strong>) faces increasing challenges and demands from boards of<br />
directors, stakeholders and other external sources. This expanding role requires balancing<br />
traditional finance responsibilities with strategy, performance, business continuity and operations,<br />
as well as risk, talent and stakeholder management.<br />
INCREASING EXTERNAL RISK FACTORS<br />
• GAAP to IFRS<br />
• FX Risk<br />
• Restatements<br />
• Shareholder Relations<br />
• IPO<br />
• Outsourcing<br />
• Dodd-Frank<br />
• Sarbanes-Oxley<br />
• Globalization Challenges<br />
• SEC Investigation Risk<br />
• Interest Rate Risk<br />
• Regulatory Compliance<br />
<strong>CFO</strong>’s Inbox<br />
8:00 AM<br />
9:00 AM<br />
10:30 AM<br />
11:00 AM<br />
12:00 PM<br />
12:30 PM<br />
1:30 PM<br />
3:00 PM<br />
5:00 PM<br />
5:30 PM<br />
8:00 PM<br />
10:00 PM<br />
Tax Audit Meeting<br />
Analyst Call / IR Conference<br />
Real Estate Committee Meeting<br />
Capital Committee Meeting<br />
Credit Card Negotiations<br />
Rating Agency Meeting<br />
Monthly Budget & Cost Centers<br />
Board of Directors Meeting<br />
Benefits Renewal<br />
Monthly Close<br />
IT Conversion<br />
Insurance Renewal<br />
5
<strong><strong>OF</strong>FICE</strong> <strong>OF</strong> <strong>THE</strong> <strong>CFO</strong>: BUILDING SUSTAINABLE<br />
BUSINESS PERFORMANCE WITH <strong>THE</strong> 4 Cs<br />
CONFIDENCE, CLARITY, CONTROLS AND CONSISTENCY<br />
To help meet these challenges, <strong>FTI</strong> <strong>Consulting</strong> offers The Office of the <strong>CFO</strong>. Working<br />
collaboratively with <strong>CFO</strong>s, we provide the objectivity, structure and creativity to design pragmatic<br />
solutions and plans of action that deliver value to their organizations and build sustainable<br />
business performance.<br />
We collaborate to provide transformation services and implement solutions to build confidence,<br />
clarity, controls, and consistency that allow an enterprise to maximize its performance and better<br />
positions it to meet 21st century challenges.<br />
Finance Operations Improvements<br />
Transformation Strategy<br />
ACCURACY AND INSIGHTS<br />
EVENTS<br />
CUSTOMERS<br />
Strategy<br />
<strong>CFO</strong><br />
Stakeholders<br />
Performance<br />
Management<br />
Risk Management<br />
Event Readiness<br />
SIMPLIFICATION AND STRUCTURAL CHANGE<br />
COMPETITORS<br />
Process and<br />
Systems<br />
Finance Organization<br />
and Community<br />
PERFORMANCE SUSTAINABILITY<br />
MARKET<br />
Cost and Profitability Improvements<br />
Business Performance Intelligence<br />
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YOUR TRUSTED ADVISOR<br />
Our approach is to work side-by-side with <strong>CFO</strong>s and the management team and focus on<br />
Accuracy and Insights, Simplification and Structural Change and Performance Sustainability to<br />
provide and implement holistic, practical solutions that protect and enhance value.<br />
• Transformation Assessment and Roadmap<br />
• Shared Services Design<br />
• Financial and Enterprise Data Analytics<br />
ACCURACY AND INSIGHTS<br />
• Finance Systems Requirements and<br />
Implementation Roadmap<br />
• Economic Value and Strategic Planning<br />
<strong>CFO</strong><br />
Stakeholders<br />
• Business Performance Management<br />
Strategy and Roadmap<br />
• Planning, Budgeting and Forecasting<br />
• Profitability Analysis<br />
• Cost Optimization<br />
• Tax Optimization<br />
• Dashboards and Key<br />
Performance Indicators<br />
SIMPLIFICATION<br />
Strategy<br />
Performance<br />
Management<br />
Risk Management<br />
Event Readiness<br />
Process and<br />
Systems<br />
STRUCTURAL CHANGE<br />
• Optimal Financial Operating Model<br />
• Finance/Accounting<br />
Operations Improvements<br />
• Balance Sheet/Working<br />
Capital Improvements<br />
• Capital Allocation<br />
• Organizational Analysis and Design<br />
Finance Organization<br />
and Community<br />
• Business Intelligence Strategy<br />
• Business Systems Integration and<br />
Process Optimization<br />
• Financial Analytics Optimization<br />
PERFORMANCE<br />
SUSTAINABILITY<br />
• Corporate Reporting/<br />
Regulatory Compliance<br />
• Operations and Enterprise Risk Assessment<br />
• Controls Redesign and Integration<br />
• Reporting and Communications<br />
• Change Management<br />
• Crisis Preparedness<br />
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CASE STUDIES<br />
FINANCE TRANSFORMATION AND IPO READINESS<br />
Global Hospitality Company<br />
On the heels of an international merger, acquisition by a private equity (PE) investor, and<br />
a restructuring that reduced headcount and relocated company headquarters, a global<br />
hospitality company engaged <strong>FTI</strong> <strong>Consulting</strong> to transform the finance organization and<br />
prepare for an initial public offering (IPO). Our professionals partnered with a team of new<br />
finance leaders to develop complex financial models, fulfill various interim management<br />
roles, execute communication and change management plans, and lead several financial<br />
system and process improvement initiatives. Throughout a resource constrained and<br />
segmented organization, the <strong>FTI</strong> <strong>Consulting</strong> team was instrumental in collaboratively driving<br />
improvements in the review, accuracy and timeliness of the financial consolidation and<br />
reporting process while leading the creation and standardization of key accounting policies<br />
and procedures. Our project management expertise was frequently tapped by the company<br />
to support high-impact enterprise wide initiatives, including a global financial systems reimplementation,<br />
finance organizational realignment and company-wide preparations for an<br />
IPO, global debt refinancing and tax restructuring. The value derived from our work has<br />
been demonstrated in efficiently upgrading the policies, processes and communications<br />
infrastructure, enabling the finance organization to drive corporate strategic initiatives in a<br />
cost-effective manner. Our colleagues continue to be agents of change to drive efficiency<br />
improvements while building a risk-aware culture.<br />
POST-MERGER INTEGRATION<br />
The Coca-Cola Company<br />
In 2010, the Coca-Cola Company announced that it would acquire its largest bottler,<br />
Coca-Cola Enterprises for approximately $12.3 billion. <strong>FTI</strong> <strong>Consulting</strong> provided merger<br />
communications and investor relations counsel to mitigate overall risk and help to advise<br />
The Coca-Cola Company in developing strategies to engage and communicate directly with<br />
key internal and external stakeholders throughout each phase of the transaction.<br />
FINANCIAL SYSTEM OPTIMIZATION<br />
Premier Jewelry Designer<br />
<strong>FTI</strong> <strong>Consulting</strong> was engaged by a premier luxury jewelry designer to assist both with business<br />
process improvement and finance department transformation. Our team developed critical<br />
solutions to improve upon organizational effectiveness in managing the “Order to Cash”<br />
cycle and helped the company increase customer service levels. Working capital management<br />
was improved, and inventory levels were reduced through diligent collaborative efforts<br />
between the <strong>FTI</strong> <strong>Consulting</strong> and management teams. The company ultimately was better<br />
positioned to use technology, had improved process responsiveness through the inclusion<br />
of best practices and introduced requisite discipline in key processes. The strategic vision for<br />
finance was embraced and the company is positioned for global expansion.<br />
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FINANCE TRANSFORMATION<br />
Global Car Rental Company<br />
Following the acquisition of the business by a PE investor and chief executive led team, a<br />
series of engagements was embarked upon to augment efforts to revitalize the business.<br />
Working closely with the executive team, we assisted in the development of comprehensive<br />
financial models, served in interim management roles, and supplemented management<br />
resources in various financial and accounting operating areas. Our professionals were<br />
instrumental in assisting and managing key ad hoc systems projects focused on business<br />
intelligence to provide the chief financial officer with critical financial and operating reports<br />
to support Securities and Exchange Commission (SEC) and PE sponsor requests. In addition,<br />
<strong>FTI</strong> <strong>Consulting</strong> added significant value in analyzing and facilitating asset sales and purchases.<br />
With our assistance, the company was able to successfully transition its headquarters across<br />
the country and prepare an S-1 shelf registration. <strong>FTI</strong> <strong>Consulting</strong> also provided the additional<br />
resources needed to prepare the company for ultimate sale to a competitor at a superior<br />
value for management and the PE sponsor.<br />
NAVIGATING A CEO TRANSITION<br />
The Allstate Corporation<br />
The Allstate Corporation was embarking on a chief executive officer (CEO) transition and<br />
needed to have a strong understanding of its key internal and external stakeholders. To<br />
assess the opportunities and challenges facing Allstate, <strong>FTI</strong> <strong>Consulting</strong> conducted two<br />
phases of research among elite (e.g., sell/buy-side analysts, institutional investors, media,<br />
trade audiences, regulators) and retail investor audiences, as well as one phase of research<br />
among employees. Based on the research findings, <strong>FTI</strong> <strong>Consulting</strong> provided Allstate<br />
leadership with strategic and tactical imperatives to utilize throughout the transition. Our<br />
counsel successfully guided Allstate through a smooth transition, as perceived by all key<br />
stakeholders. In addition, this research provided the new CEO with key concepts and<br />
initiatives for business strategy and corporate positioning.<br />
ASSISTING IN FCPA INVESTIGATIONS<br />
Global Freight Forwarding Company<br />
The Department of Justice requested several oil and gas service companies to provide<br />
information relating to their business activities with Panalpina, a global freight forwarding<br />
company, in order to evaluate allegations of violations of the Foreign Corrupt Practices<br />
Act (FCPA). <strong>FTI</strong> <strong>Consulting</strong> was engaged by certain of the companies to assist with the<br />
Panalpina-related FCPA matters, which included the review of thousands of customs broker/<br />
freight forwarder invoices, and an analysis of customs charges and service fees, as well as<br />
visa, husbandry, permitting, and related processes. <strong>FTI</strong> <strong>Consulting</strong> experts also analyzed<br />
movements of equipment and reviewed all applicable customs and shipping documentation,<br />
including review of charges for patterns and unusual amounts related to import and export<br />
of rigs and service vessels, port charges, inspections, piloting, and attaining of bonds. We<br />
also assisted with negotiation of the amounts to be paid to vendors for questionable charges<br />
including the identification of unsupported amounts. Our teams worked closely with outside<br />
counsel and company representatives over an extended period of time identifying and<br />
resolving the key issues.<br />
9
INVESTIGATING WHISTLEBLOWER ALLEGATIONS<br />
Large, Public International Company<br />
<strong>FTI</strong> <strong>Consulting</strong> was contacted by the head of compliance of a large, public, international<br />
company and its outside counsel regarding whistleblower allegations relating to accounting<br />
for income taxes in the consolidated financial statements of the company. The timing was<br />
urgent given the rapidly approaching deadline to file the company’s Form 10-K with the SEC.<br />
<strong>FTI</strong> <strong>Consulting</strong> immediately assigned a team, highly skilled in accounting for income taxes<br />
and financial reporting, to work with outside counsel and company’s compliance team to<br />
develop an action plan and commence work. Our team participated in interviews, reviewed<br />
critical documents, focused on historical accounting for the issues that were the subject of<br />
the whistleblower allegations, participated in meetings with the independent auditors who<br />
were literally in the final stages of their audit when the allegations surfaced, and assisted<br />
with overall evaluation of the findings and proposed remediation. Within a very short<br />
period of time, an efficient, focused investigation by the team of attorneys, <strong>FTI</strong> <strong>Consulting</strong><br />
representatives and company compliance representatives was completed, resulting in the<br />
timely filing of the Form 10-K.<br />
RECONSTRUCTION <strong>OF</strong> GOVERNMENTAL ACCOUNTING RECORDS<br />
Governmental Municipality<br />
A governmental municipality identified apparent discrepancies between its cash-on-hand<br />
and the corresponding project-by-project totals in its accounting system, in connection with<br />
active, authorized, capital project funds. <strong>FTI</strong> <strong>Consulting</strong> was engaged to identify the relevant<br />
accounting guidelines, test and reconcile the municipality’s cash activity/balances against<br />
the respective resolutions and disbursement records, then consult on the development of a<br />
database that could maintain pertinent project funding, financial status and progress-towardcompletion<br />
information. <strong>FTI</strong> <strong>Consulting</strong> assembled and dispatched a team consisting of<br />
CPAs, CFEs, former public and private auditors, data technologists, and professionals who<br />
previously served as controllers and <strong>CFO</strong>s. Working closely with the municipality’s financial,<br />
legal, and administrative staff, and leveraging the efforts of third-party contract accountants,<br />
<strong>FTI</strong> <strong>Consulting</strong> analyzed and directed the reconstruction of the entity’s accounting records<br />
for all active projects over the course of the prior five years, which included the recognition<br />
of bond issuance proceeds, inter-governmental funding, and detailed project accounting–<br />
with our efforts enabling the successful completion of the municipality’s annual audit for the<br />
sixth year of its examination.<br />
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www.fticonsulting.com<br />
12 Officeofthe<strong>CFO</strong>@<strong>FTI</strong><strong>Consulting</strong>.com